I received an email from the vice principal of a Santa Ana middle school that I spoke at last week. She thanked me for conducting some free workshops for the parents and children at the school and told me how valuable it was. I told her that I was happy to give back. I had actually approached over 150 high schools and middle schools in Orange County and her school was the only one that wanted to take me up on the offer to conduct a free session for the parents on “How to Win Cooperation and Influence Your Teenager in the Digital Age.” Was it because they did not need these skills? No. It was perceived value; because I offered to do it for free they thought it must not be any good.
This is an important lesson for sales people to remember. When you reduce your price, the perceived value is lowered. “Perceived value” is the worth that a product or service has in the mind of the consumer. This directly effects what they will be willing to pay in the future. They may perceive a more expensive product is more valuable simply because of the price.
If you want to increase the perceived value of your product or services follow these three rules:
1. Translate the Value
You must be able to communicate the value of what they need in terms that they understand. This requires asking focused questions to find out the “why’s” before recommending what they should buy. When you find out what motivates your customers, you have one of the most powerful tools to get them to take action. Then you can reframe what motivates them in terms of your product and services. You increase the value in their mind because they can now visualize the outcome and its direct impact to their lives.
2. Use Powerful Evidence to Increase Importance
Leverage evidence to increase the importance of your product or service in the minds of your prospects. In other words, if you simply vocalize the benefits they may doubt your claims, but if you have testimonials, case studies, third party reports, statistics or exhibits to back up what you say, they will be more willing to believe what you offer is valuable to them and more likely perceive it as being worth what you are asking for it.
3. Be Enthusiastic
Author Dale Carnegie was right when he said, “The little know secret to success is enthusiasm!” He stated that almost 100 years ago and yet it is still a secret. Sales people don’t understand how valuable enthusiasm is in a sales environment. You have to be excited about the value of what you are selling because that excitement is contagious. Your enthusiasm will also get the prospect excited about what you are selling. People like to buy from people who have a heartfelt belief and excitement about their products.
By increasing the perceived value of what you are offering, your prospects will understand, believe and be excited about what you can offer.
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